Corrective Action Plans

Finding 2024-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Cindy Sharp, Deputy Finance Director Corrective Action Plan: Management has hired a new finance director with governmental accounting experience, as well as an accountant (a licensed CPA in Colorado) with a long history of governmental auditing and accounting experience. Management, together with experienced accounting staff, will review reporting deadlines and work diligently toward timely report submissions in the future. Management and accounting staff will also carefully review reporting requirements and ensure that requirements are adhered to. This includes the following program(s): Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) / ARPA Non-Profit Recovery Funds (NPRF) (ALN 21.027). Proposed Completion Date: Fiscal year 2025.

Management has started the audit preparation process for 2054 and will ensure that the 2025 audit is completed within the required timeframe.

SUBRECIPIENT MONITORING ALN Number 93.558 Temporary Assistance for Needy Families (TANF) 93.489. 93.575. 93.596 Child Care Development Fund (CCDF) 93.568 Low Income Household Energy Assistance Program (LII-IEAP) 2024-039 Strengthen Controls over Subrecipient Monitoring to Ensure Compliance with Uniform Guidance Auditing Requirement . Federal Award No. All Current Active Grants Response : MDHS concurs that controls should be strengthened over subrecipient monitoring to ensure compliance with Uniform Guidance Auditing Requirements. Corrective Action Plan: 1. Strengthen Controls over Subrecipient Monitoring to ensure compliance with Uniform Guidance. A. The Office of Compliance. Division of Monitoring has made significant strides in strengthening controls over the subrecipient monitoring process ensuring compliance with Uniform Guidance Auditing Requirements. The Division continues to review and update the processes and procedures as necessary to ensure processes are adequate and effective. Staff are constantly notified/trained on updates to policies. procedures. and regulations to ensure continued compliance with monitoring the agency's subgrant agreements. B. Responsible Party: Laketha Gilmore. Director of Monitoring and Kameron Harris. Chief Compliance Officer C. Completion Date: The corrective action has been implemented and is ongoing.

The California Consortium for Urban Indian Health (CCUIH) respectfully submits this corrective action plan in response to the finding related to the late completion of the FY 2024 A‐133 audit. The delay resulted from administrative transitions and staffing challenges within the Finance Department during the audit period. These circumstances affected the timely preparation of required schedules, supporting documentation, and responses to auditor requests. CCUIH has taken the following corrective actions to address the issue: · All FY 2024 audit requirements have now been completed and submitted. · Internal processes for audit preparation have been reviewed to identify gaps and inefficiencies. To prevent recurrence, CCUIH will implement the following measures: · Establish a revised annual financial reporting and audit preparation calendar with clearly defined internal deadlines. · Cross‐train finance staff to ensure continuity during staffing transitions or absences. · Strengthen oversight procedures for audit readiness, including periodic internal check‐ins leading up to the audit period. · Develop written procedures outlining roles, responsibilities, and timelines for audit preparation. The anticipated completion date for all corrective actions is June 30, 2026. The parties responsible for implementing and monitoring this corrective action plan are: · Kescia Turner, Director of Finance · Jennifer Ruiz, Executive Director

Finding Reference: 2024-008 Finding Title: Noncompliance and Significant Deficiency, Data Collection Form CAP Contact Persons: • John Morris, Chief Financial Officer, Financial Affairs, (312) 322-6420 • Joseph Psioda, Controller, Financial Affairs, (312) 322-6346 Planned Corrective Actions: 1. Submission of Federal Reporting Package: Management will implement procedures to ensure the timely completion and submission of the annual audit, reporting package, and data collection form. This will include establishing a detailed audit timeline with interim milestones, strengthening coordination among departments responsible for required data and information, and proactively monitoring federal reporting deadlines. Management will also develop contingency plans to address delays in complex audit areas to minimize the risk of future reporting delays. These procedures will be implemented for the 2025 audit cycle to ensure timely submission to the Federal Audit Clearinghouse. Anticipated Completion Date: 06/30/2026

Finding 2024-010 Material Weakness in Internal Control and Noncompliance, Late Issuance of the 2024 Single Audit Reporting Package to the Federal Audit Clearinghouse: Condition: The Single Audit packages for the City’s fiscal years ended June 30, 2024, June 30, 2023 and June 30, 2022 should have been submitted to the Federal Audit Clearinghouse by March 31, 2025, March 31, 2024 and March 31, 2023, respectively. The City missed the filing deadlines, making the filings for 2024, 2023 and 2022, late. Contact Person: Daniel Garrick, Director of Finance Corrective Actions Planned: We agree with the finding. The City and Danbury Public Schools have made the audits a top priority by filling vacant positions and hiring an audit consulting firm. The 2025 audit is in process and we anticipate that the 2026 audit will be completed in a timely manner. Anticipated Completion Date: March 31, 2027

Due to various internal and external issues, the single audit was not issued by the September 30 due date. The 2025 single audit will be performed in conjunction with the financial audit and issued well in advance of the deadline.

Airport management will ensure the audit reports and data collection form are submitted to the FAC timely.

CORRECTIVE ACTION PLAN Name of auditee: Friends of the Mission Finding: 2024-002 Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: January 1, 2024 through December 31, 2024 CAP prepared by: Scott Thurmond, Executive Director Telephone: (916) 416-0901 Comments: Management agrees with the finding. Actions: Management will ensure that audited financial statements are submitted to the Federal Audit Clearinghouse within the required time frame.

The Corporation should file the December 31, 2024 financial statements as soon as possible and should ensure the annual financial report is filed within 30 days after the date of the auditor’s report and within nine months of fiscal year end.

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2024 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2024-002: The Corporation has not submitted audited financial statements to the Federal Audit Clearinghouse after the receipt of the auditor's reports. Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Action(s) taken or planned on the finding: The audited financial statements will be submitted to the Federal Audit Clearinghouse on a go forward basis.

2024-005 – Reporting Contact Person Terry Hanson Corrective Action Plan Management recognizes the delayed submission of the 2024 audit to the Federal Audit Clearinghouse. To prevent recurrence, management is developing a compliance calendar and assigning responsibility for federal filing deadlines to the Director of Finance. Regular progress reviews will ensure all audit deliverables are completed and submitted within the required ninemonth period. This corrective measure will improve accountability and ensure timely compliance with federal reporting standards. Planned Completion Date for CAP Immediately

March 6, 2026 - Bowling Green – Warren County Regional Airport Board respectfully submits the following corrective action plan for the year end June 30, 2024. Name and address of independent public accounting firm: Kirby & Moore, LLP, 1020 College Street, Bowling Green, Kentucky. Audit period: Fiscal year ending June 30, 2024. The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT: 2024-001 Material Weakness: Adjusting Journal Entries. Recommendation: The accounts of the organization should be reviewed each reporting period to ensure balances are reported in accordance with accrual basis accounting principles generally accepted in the United States of America (U.S. GAAP). Action Taken: Airport management will ensure accounts are reviewed each reporting period to ensure balances are reported in accordance with U.S. GAAP. FINDINGS – FEDERAL AWARD PROGRAM AUDIT: DEPARTMENT OF TRANSPORTATION - 2024-002 Airport Improvement Program – 20.106. Recommendation: Procedures should be put in place to ensure the data collection form is submitted to the FAC timely. Action Taken: Airport management will ensure the data collection form is submitted to the FAC timely. If the Federal Aviation Administration has questions regarding this plan, please call Susan Harmon at 270-842-1101.

Finding 2024-003: Late Submission Corrective Action: The City of Menomonie is developing policies and procedures to ensure that financial records are maintained on a more current basis, reconciled timely and audited within nine months after year-end. Persons Responsible: Eric Atkinson Anticipated Completion Date: Ongoing

Corrective Action Plan The Corporation will take the following corrective actions: • Financial Close Acceleration – The Corporation is aligning its accounting closing expectations for the issuance of its financial statements according to the Secretary of the Department of Treasury deadlines. Therefore, the accounting close processes are being improved in order to be completed by September of each fiscal year and issue the Single Audit on or before March 31 of the following fiscal year (nine months after each year end). • Compliance Calendar Implementation – Develop a formal compliance calendar to close its accounting books on September 30 and issuing the financial statements by March 31. Name of the contact person responsible for corrective action plan Jesús A. Rodríguez Avilés – Financial Planning and Analysis Director Anticipated Completion date March 31, 2027

MANAGEMENT WILL ENSURE THAT FUTURE AUDITS ARE COMPLETED TIMELY.

Views of Responsive Officials of Auditee: Management recognizes that the City’s audits have not been completed within the required statutory deadlines in recent years, including the reporting delay noted in this finding. These delays were primarily the result of turnover and transition in key financial staff positions, which impacted continuity and the timely completion of audit-related activities. At the same time, management would like to highlight the significant progress that has been made in addressing this issue. Over the past six months, the City has successfully completed two fiscal year audits, representing meaningful advancement toward eliminating the audit backlog. Management is committed to continuing this progress and has established a plan to return to full compliance with reporting deadlines. The City anticipates being fully current beginning with the FY-2027 audit cycle and will continue implementing process improvements and ensuring staffing stability to support timely audit completion. Management understands the importance of timely reporting, particularly as it relates to maintaining eligibility for federal funding and will prioritize adherence to all applicable deadlines moving forward.

Management has taken steps to contract an audit firm and is currently working with the auditors to perform the single audit for the fiscal year ended June 30, 2025, with anticipation of completion before the deadline of March 31, 2026. Management has also prepared a Schedule of Expenditures of Federal Awards for the fiscal year ended June 30, 2025.

Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action FNCH recognizes the critical importance of establishing robust internal controls to guarantee the timely preparation and accurate submission of reports and records for audit purposes, particularly in alignment with the requirements outlined in 2 CFR 200.512. To effectively implement these internal controls, management will enforce procedures for the timely preparation of all necessary reports and records, including the Schedule of Expenditures of Federal Awards (SEFA). This will not only facilitate smoother audit processes but also ensure adherence to the 2 CFR 200.512. Management will train staff and establish timelines and responsibilities for report preparation and documentation to enhance compliance and streamline overall operations. Expected Outcome: • On‑time Single Audit filings in compliance with federal rules. • Clear visibility and accountability for deadlines. • Reduced risk of penalties and funding delays. • Greater confidence from agencies and stakeholders. Due Date of Completion: 3 days following issuance of the audit report Responsible Party(ies): CEO, CFO

Full text of the Corrective Action Plan includes a chart, table or footnotes.

Management will implement the following procedures to ensure timely submission to the Federal Audit Clearinghouse: 1) Incorporate Federal Audit Clearinghouse submission deadlines into the annual reporting calendar. 2) Assign responsibility for preparing and uploading the required reporting package immediately upon audit completion. 3) Establish a compliance checklist for Uniform Guidance requirements. 4) Require documented confirmation of submission and Board notification once filing is complete. 5) Monitor submission deadlines through Finance Committee oversight.

Finding 2024-004 | Untimely Submission of Single Audit Reporting Package Noncompliance | Repeat Finding | Third Consecutive Year (2022-001, 2023-006, 2024-004) | 2 CFR §200.512(a) Finding Number: 2024-004 Planned Completion Date: June 30, 2026 (FY2025 single audit submitted to FAC on or before this date) Responsible Official(s): Josafat Saldivar, Finance Director (primary); Juan E. Rodriguez, Executive Director (oversight and Board reporting) Agency Response: STDC acknowledges the finding and concurs that the Single Audit reporting package for the fiscal year ended September 30, 2024 was not submitted to the Federal Audit Clearinghouse (FAC) by the required deadline of June 30, 2025, under 2 CFR §200.512(a). STDC recognizes that this represents the third consecutive year in which the single audit has been submitted late, following Finding 2022-001 and Finding 2023-006, and takes seriously the compliance obligation and the operational risks associated with continued noncompliance with the submission deadline. The late submissions across FY2022, FY2023, and FY2024 are the direct result of a series of compounding operational disruptions originating with the Council's transition to a new accounting system in January 2022, further complicated by a ransomware attack in November 2023. Management provides the following chronological context to demonstrate the depth and duration of the disruptions that collectively prevented timely audit completion across three consecutive fiscal years: Accounting System Transition (2021-2022): In March 2021, following a six-month procurement process, STDC contracted with Lance, Soil & Lunghard, LLP (LSL, LLP), an authorized AccuFund reseller, to implement AccuFund as its new accounting platform. The go-live date was delayed from October 1, 2021 to January 1, 2022 to allow the Board of Directors to approve related payroll and operational changes. When the system launched on January 1, 2022, critical components — including the fringe benefit and indirect cost allocation pools, timesheet approvals, budget, requisitions, funding reports, and travel modules — had not been configured. Transaction history and beginning balances were imported incorrectly. Work with LSL, LLP concluded in September 2022 without resolution of these deficiencies. AccuFund Remediation (2022-2023): Beginning in October 2022, STDC engaged AccuFund directly to identify and correct the configuration deficiencies. In February 2023, AccuFund assigned a Senior Consultant to the engagement. Between March and October 2023, the Consultant worked with STDC to configure the fringe benefit and indirect cost pools, reconfigure payroll, and correct the transaction history and trial balances that had been incorrectly imported during the original implementation. This remediation work was still ongoing at the time of the ransomware attack. Ransomware Attack and Recovery (November 2023 – September 2024): On November 4, 2023, STDC suffered a ransomware attack that compromised the SQL database housing all AccuFund financial data. Following recovery efforts, STDC migrated to AccuFund Anywhere, a cloud-hosted version of the platform, and regained system access in late December 2023. Between January and March 2024, staff manually re-entered transaction data that had been processed offline during the system outage. Between April and September 2024, STDC continued working with the AccuFund Senior Consultant to finalize system configurations and correct remaining beginning balance and transaction history issues — many of which dated back to the original 2022 implementation errors. Sequential Audit Completion (2024-2026): The cumulative effect of these disruptions required STDC to complete three fiscal year audits in sequence rather than on schedule. The FY2022 audit was completed in December 2024 and submitted to the FAC, with a revised submission in January 2025 following an HHSC review that identified a misclassification of assistance listing number balances. The FY2023 audit was completed and submitted to the FAC in July 2025. Work on the FY2024 audit commenced in August 2025 and is being finalized for Board approval on March 26, 2026, with FAC submission to follow immediately. The FY2025 fiscal year ended September 30, 2025, and STDC is actively preparing for that audit with a target FAC submission date of June 30, 2026. Management acknowledges that the cumulative nature of these disruptions resulted in a multi-year audit backlog that could not be resolved within the annual submission deadlines. STDC is committed to breaking this cycle. With the AccuFund system now stable, the cloud migration complete, and three years of corrected financial records in place, STDC has the accounting infrastructure necessary to support timely audit completion going forward. The corrective actions below reflect the specific steps being taken to achieve the June 30, 2026 FY2025 submission target and to prevent recurrence in future years. Note: Because the FY2025 fiscal year ended September 30, 2025 and the FY2024 audit is being finalized concurrently, several of the steps below are already underway as of the date of this report (March 2026). Target dates reflect the current accelerated timeline required to achieve FAC submission by June 30, 2026. Corrective Actions to Be Implemented: Action 1 (Target: In progress — April 15, 2026): FY2025 Audit Preparation Timeline — A compressed audit preparation schedule has been established for the FY2025 audit (year ended September 30, 2025) with the following key milestones: final trial balance and year-end reconciliations delivered to the auditor by April 15, 2026; draft financial statements completed by the auditor by May 31, 2026; management review and final adjustments completed by June 10, 2026; final audit report issued by the auditor and reviewed and approved by the STDC Board of Directors by June 25, 2026; and submission of the complete reporting package to the Federal Audit Clearinghouse by June 30, 2026. Action 2 (Target: In progress — March 31, 2026): Auditor Engagement — FY2025 — De La Garza CPA Firm, P.C. has been engaged for the FY2025 audit. Fieldwork scheduling and document request lists are being coordinated to ensure the auditor can begin and complete work within the compressed timeline. STDC will provide all requested documentation on a priority basis to avoid delays in fieldwork. Action 3 (Targets: March 26, 2026; April 22, 2026; June 25, 2026): Board Reporting — The Executive Director will present audit status to the Board of Directors at the March 26, 2026 board meeting and at each subsequent board meeting. The June 30, 2026 FAC submission target will be tracked as a standing Board-level performance objective with final review and approval of the FY2025 audit report by the Board of Directors targeted for June 25, 2026. Action 4 (Target: July 31, 2026): FY2026 Audit Preparation Timeline — Upon submission of the FY2025 audit, STDC will immediately follow its formal written audit preparation timeline for the FY2026 audit (year ended September 30, 2026), with milestone dates beginning at fiscal year-end and targeting FAC submission by June 30, 2027. The timeline will be modeled on the Single Audit Submission Timeline Protocol adopted under Findings 2022-001 and 2023-006 and approved by the Executive Director. Monitoring and Evaluation: The Finance Director will maintain a running audit preparation status log updated weekly through June 30, 2026, and monthly thereafter. The Executive Director will report audit status to the Board of Directors at each meeting. The immediate target outcome is submission of the FY2025 single audit reporting package to the Federal Audit Clearinghouse on or before June 30, 2026. Achievement of this milestone will demonstrate STDC's return to timely compliance and is expected to support removal of the high-risk auditee designation in the FY2025 audit cycle.

We concur with the recommendation. The City of Angoon has diligently worked to meet the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period. The Fiscal year ending 06/25/2025 will be submitted timely, as well as all future audits. An external accountant was hired to help train and oversee the city accounting staff which has allowed the accounting records to easily be prepared for future audits.

2024-002 – All Federal Programs – Compliance – Data Collection Form Finding: For the fiscal year ended September 30, 2023, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2024, in accordance with the federal requirements. In addition, due to the late issuance of the 2024 fiscal year audit, the submission deadline for FY 2024 of June 30, 2025 has passed and as such, the Village did not meet the submission deadline. Correction Action: The Village will ensure the data collection form for the fiscal year ending September 30, 2025 is submitted at the completion of the audit. Responsible Parties: Village Administrator, Community and Economic Development Coordinator and Accounting Supervisor. Anticipated Completion Date: June 2026

TOFMHS concurs with the finding. The agency retained new auditors for the June 30,2024 fiscal year, subsequent to the due date for submission of the data collection reports. Corrective Action to be Taken: The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data collection report within the required time period. Responsible Person: Fiscal Officer/Program Director Completion Date: January 1, 2025